Rehab in Flood Plain
Hello everyone,
Just finished up my first rehab project and found out that the house is located in a 100-year flood plain after a showing to a prospective buyer.
The good news is that the municipality has already done all of the mitigation work to resolve any future flooding issues but I need to wait until FEMA reflects this on their maps which could take up to 2 years.
I did get a great deal on this place but it has been on the market a couple of weeks with only one offer that ended up falling through. I also believe it is priced competitively but things cooled off in my market about a month ago. I should add that we did a complete rehab as well (new kitchen/granite, bathrooms, windows, rebuilt walls and reconfigured layout on 2nd floor w/ all permits pulled).
He is how I plan on handling things:
1. I am a disclosing this newly found info in the listing.
2. I will likely offer a credit for 2 years of flood insurance.
3. Lower asking price
I want to reiterate that this is new information to me and I plan on fully disclosing this to any prospective buyers.
I am wondering if any of you out there have run into a similar issue or if you have any ideas on how you might handle the situation.
Any input would be greatly appreciated.